JK Harris Offers Tips on Claiming Earned Income Tax Credit

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JK Harris and Company offers tips to help taxpayers determine if they qualify for the Earned Income Tax Credit.

Many taxpayers have heard of the Earned Income Tax Credit, but few know how easy it is to find out if they qualify for it.

The Earned Income Credit or EITC, is available to people who work, but have lower income. If qualified, it could be worth up to $4,700 to some taxpayers.

"It is much more simple than most taxpayers realize to determine if they qualify for the Earned Income Tax Credit," said Ralph Havens, Enrolled Agent and Director of Professional Services with JK Harris and Company, LLC, the nation's largest tax resolution company. "The IRS offers simple online tools to take the guesswork out of the EITC."

The tool Havens refers to is the EITC Assistant, available on the Internal Revenue Service website at http://apps.irs.gov/app/eitc2007/SetLanguage.do?lang=en. The EITC Assistant is an interactive tool that takes all the mystery out of the EITC. The Assistant has the taxpayer answer a few simple questions about themselves, their children, their living situation and their income amount to find out if they qualify for the EITC. It will then estimate the amount of the EITC right away.

"The Earned Income Credit is based on income and if you have qualifying children in your household," said Havens. "For children to qualify, they must meet the age, relationship and residency requirements."

According to the IRS, a taxpayer may be qualified for the credit based on these guidelines:

  • The taxpayer earned less than $12,590 ($14,590 if married filing jointly) and did not have qualifying children
  • The taxpayer earned less than $33,241 ($35,241 if married filing jointly) and have one qualifying child
  • The taxpayer earned less than $37,783 ($39,783 if married filing jointly) and have more than one qualifying child

Taxpayers must also have a valid Social Security number, have earned income from employment or from self-employment, be a US citizen or resident alien all year or a nonresident alien married to a US citizen or resident and filing a joint return and you cannot file married, filing separately. Additionally, you cannot be the qualifying child of another person or file Form 2555 or 2555EZ.

For more information about the Earned Income Tax Credit, visit http://www.irs.gov or read Publication 596, Earned Income Credit. Copies of the publication can be ordered by calling 800-TAX-FORM (800-829-3676).

About JK Harris:
JK Harris & Company, LLC, (http://www.jkharris.com) based in North Charleston, S.C., is the nation's largest tax resolution firm and has served over 200,000 customers since its founding in 1997 by John K. Harris. JK Harris consultants are available to meet with consumers in over 425 locations nationwide by appointment only. The company also provides services for student loan debt, fee-based financial planning, tax return preparation, and audit representation.

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